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Federal Charges - Hackers broke into an SEC database and made millions

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posted on Jan, 19 2019 @ 03:19 PM
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The charges were announced Tuesday by Craig Carpenito, U.S. Attorney for the District of New Jersey, alongside the SEC, the Federal Bureau of Investigation and the U.S. Secret Service, which investigates financial crimes.

The hackers used malicious software sent via email to SEC employees. Then, after planting the software on the SEC computers, they sent the information they were able to gather from the EDGAR system to servers in Lithuania, where they either used it or distributed the data to other criminals, Carpenito said.


Hackers broke into an SEC database and made millions from inside information, says DOJ

The hack took place in 2016, it involved individuals from the U.S., Russia and Ukraine. You would think the Securities and Exchange Commission would have more "security".




posted on Jan, 19 2019 @ 03:28 PM
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originally posted by: LookingAtMars
You would think the Securities and Exchange Commission would have more "security".


Yeah, the nerve o' them hackers trying to get in on their racket. We're so screwed every which way we look.



posted on Jan, 20 2019 @ 03:44 AM
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originally posted by: The GUT

originally posted by: LookingAtMars
You would think the Securities and Exchange Commission would have more "security".


Yeah, the nerve o' them hackers trying to get in on their racket. We're so screwed every which way we look.


I favour the hackers, at least they are honest about their intent.



posted on Jan, 20 2019 @ 06:41 AM
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a reply to: gallop

Etherium dropped another 5% overnight on the signal.
Who pays for the inside traders profits?



posted on Jan, 20 2019 @ 07:12 AM
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The hackers used malicious software sent via email to SEC employees.


They were phished, not hacked.



posted on Jan, 20 2019 @ 01:16 PM
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One of the examples of the exploit:


Prosecutors say that Radchenko recruited traders to the scheme and allegedly shared the stolen test filings with them. The DOJ gave one example of how the traders allegedly used the information to fatten their brokerage accounts: a test filing for “Public Company 1” was uploaded to the EDGAR servers at 3:32 p.m. on 19 May 2016. Six minutes later, the defendants allegedly stole the test filing and uploaded a copy to their Lithuanian server. A few minutes later, one of the conspirators purchased about $2.4 million worth of shares. At 4:02 p.m., the company released its second-quarter earnings report and announced good times were ahead: it expected to deliver record earnings in 2016. The conspirator then sold the shares for a tidy profit of more than $270,000.


So we are talking about a 24 minute window of advantage since the hackers immediately sold on the news ~4:02 p.m.

There is a stock traders metric involving the (price move/volume of trades) but you have to know the true volume of trade which is apparently hidden sometimes.

Another issue, what happens with margin calls on a sudden move against your holdings?

Good example, there was a big buy burst on the Dow Jones index in the last minutes of trading Friday.
The overall *reported* volume for the day really wouldn't justify a 336 point gain in the old days.
On thin trading days due to high speed computer algorithms they can set the indexes anywhere they want.

Technically there should be resistance near Dow 25,000 but what if there were a lot of margin calls that will force the short sellers to cover their trades and buy shares when trading resumes next week?


edit on 20-1-2019 by Slichter because: (no reason given)




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